Given the transactions in M3-18 and M3-19 (including the examples), prepare an income statement for Swing Hard

Question:

Given the transactions in M3-18 and M3-19 (including the examples), prepare an income statement for Swing Hard Incorporated for the month ended February 28. (This income statement would be considered “preliminary” because it uses unadjusted balances.) What is the company’s net profit margin, expressed as a percent (to one decimal place)?

Data From M3-18

The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States. For each of the following transactions, complete the spreadsheet, indicating the amount and effect (+ for increase and − for decrease) of each transaction under the accrual basis. Write NE if there is no effect on the category. Indicate +/− if the effects offset within a category. Include revenues as a subcategory of stockholders’ equity, as shown for the first transaction, which is provided as an example.

Data From M3-19

The following transactions are February activities of Swing Hard Incorporated, which offers golfing lessons in the northeastern United States. For each of the following transactions, complete the spreadsheet, indicating the amount and effect (+ for increase and − for decrease) of each transaction under the accrual basis. Write NE if there is no effect on the category. Indicate +/− if the effects offset within a category. Include expenses as a subcategory of stockholders’ equity, as shown for the first transaction, which is provided as an example.